Jose Braz, ERGEG

Conference on Implementing the 3rd Package

11th December 2008

The Agencyfor the Cooperation of European Energy Regulators

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Update on the negotiations

• European Energy Regulators have always considered that the Agency should have real powers and independence

• Council and Parliament have introduced a number of changes to the Commission’s proposal

• Both have proposed an enhanced role for the Agency in relation to the development of framework guidelines and codes

• Areas to be discussed during the second reading: • New tasks placed on the Agency • Monitoring/enforcement of the network codes by the Agency• accountability

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Consultation guidelines

• During the interim period, ERGEG will:• enhance its own consultation processes, • “test” them, and • propose a process, based on this, to the Agency

• Improvements to the ERGEG consultation include:• Call for evidence to be arranged after publication of

a request for advice received from the European Commission

• Impact assessments (Publishing reasons for a decision…etc.)

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Consultation guidelines

• These Guidelines set out some key principles of consultation:

• Whom the European Energy Regulators consult• When they consult• How they consult• How they respond to consultation• How they treat confidential information• How these consultations relate or complement the

Athens, Florence, Madrid and London fora and regional initiatives

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Consultation procedure of the Agency

General obligation

• Discretion of the Agency on when a consultation should be launched

Position of the European Energy Regulators:

Always consult:• When providing an opinion to the European

Commission, to the Council, or to the European Parliament

• On an issue of importance for the single European market Especially when the opinion is to be the basis for launching the Comitology procedure

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Engaging with stakeholders

Objective• A powerful and independent Agency should be

accountable to EU institutions and to stakeholders• Engaging with stakeholders – notably through

consultation – is key:• To gain input to the opinions/recommendations to

be given in relation to framework guidelines and codes

• To all the other tasks to be undertaken by the Agency, as a key element for the development of new regulatory policies

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Stakeholder panel

• Proposed by stakeholders themselves• Different sorts of panel could be envisaged• Fully representative stakeholder panel

• Hard to make properly representative whilst also being effective

• Duplicates Madrid, Florence and other Fora

• Expert panels of expert customers and network users• Around 10 members, not representative• Topic focussed – to supplement rather than replace new

enhanced consultation processes• Organised under Madrid, Florence – or separately• Could inform policy development – e.g. on codes

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Accountability and Reporting

• Through the following instruments (foreseen in the draft regulation)• Annual report on the activities of the Agency • An evaluation report to be presented by the Commission, the

European Parliament and the Council

• To improve the accountability to stakeholders • The Chairperson of the Board of Regulators should to report to

the European institutions to ensure full accountability. • A Quality Charter, setting out the way for the Agency to

ensure accessibility, timeliness and quality of decisions is needed.

• Continued improvement of the Quality Charter is needed, through input of market participants by way of a “Satisfaction

Survey”.

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Building blocks for establishment of the Agency

• Objective• Build an efficient Agency to be up and running from the

start• Various organs of the Agency may be set up shortly

after the Third Package is adopted:• Board of Regulators • Administrative Board• Director of the Agency, and his/her staff• Board of Appeals

• But the Agency will not be in a position to fulfil its tasks until eighteen months after the 3rd Package is adopted.

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ERGEG and the Agency

• ERGEG is well placed to prepare the work of the Agency during the interim period

• The composition of ERGEG is similar to the Board of Regulators (BoR) of the Agency

• The establishment of the Agency will be a key area of work for the regulators during the next two years

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ERGEG and the Agency

• The establishment of the Agency: a priority of the European Energy Regulators 2009 Work Programme

• This will involve:• Development of proposals in terms of organisational

arrangements for the Agency• Drafting of the Rules of Procedure of the BoR. The Rules of

Procedure of the BoR will address working methods, rules governing the decision making process of the BoR and the interactions between decisions at regional and at EU levels

• Guidelines for the cooperation between NRAs and between NRAs and the Agency

• A published document, which will describe the way interactions between the Agency and ENTSOs will take place.

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Thank you for your attention!

More information on the consultation paper and the 3 appendices is available at:

www.energy-regulators.eu